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tv   Fast Money  CNBC  August 9, 2018 5:00pm-6:00pm EDT

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and a sharp rise in interest rates that -- and they could be rangebound for a while and i do think the stocks in a lot of people's minds is the fed's going to pause perhaps. >> so we will see, and the cpi, of course, coming out on "squawk box" and you don't want to miss "fast money. that does it for "the closing bell". "fast money" starts right now as always from the nasdaq marketsite in new york, just dreamy times square. i'm brian sullivan, welcome. your traders on the desk tonight are tim seymour, karen finerman and guy adami. check out shares of drop box it is dropping down 9% and the earnings call under way right now and we'll tell you what wall street is saying about that report and obviously, investors they no like >> plus all work and no play would make everybody especially jack dorsey a dull boy and he's working overtime on his apology tour his first stop, fox news and
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sean hannity, but is he playing a dangerous game with shareholders all that coming up, but first, we've got to start again with tesla. it is directly in the crosshairs once again that stock has round tripped since elon musk's famous tweet about taking the company private and that stock down to the levels it hit after the earnings report that wall street didn't like last week, but it may be signaling there is no deal in sight. let's go right now to phil lebeau in chicago for all of the developing details on an equity, phil that is saying investors are not convinced. >> they're not convinced and they're waiting for some definitive word from tesla or elon musk about, if there is funding and what's the source of that funding there are more questions than answers at this point, and some of those questions are being asked by the sec a report this afternoon by bloomberg saying that the sec has been looking into elon musk's tweets and communications regarding sales or manufacturing
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production guideline that has people saying look, is this a broader probe than simply looking into this one tweet on tuesday about potentially going private and securing funding at $420 also, a lot of people have been asking what's the reaction of the short community because this stock went dramatically higher on tuesday how much did that flush out the shorts not a whole lot. we did some checking with some of the folks who regularly track the shorting community and basically when they came out with was, look, 34.7 million shares shorted right now that's 27.24% of the float that is out there really hasn't changed much this week even though you would think a lot of people would cover or bring down their positions and there has been limited short covering since tuesday and, brian, the interesting thing is as you take a look at shares of tesla, you know this, everybody knows this, the market hates a vacuum and that's what we have right now
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because there's no information coming out of tesla. we have asked repeatedly today they have said we have no comment regarding anything since elon musk put out the blog on tuesday afternoon clarifying to a certain extent his position on potentially taking the company private. so at this point, guys, we have a stock that's right back where it was before he even tweeted potentially taking the company private. >> you know, phil, also, let's talk about how you're getting information and the reality is you've been dealing with the automobile industry and the airline industry for years they all do business kind of the same way tesla, a little bit of a loose canon and particularly because of ceo elon musk and how difficult has it been reporting on the story when you have tweets that go out and everything goes into a point into a vacuum? >> look, the key here, brian is you have to ignore a lot of the noise that is out on social media. it's not hard to find the bulls or the bears who are out pushing
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ridiculous theories or ridiculous information separate away from that and it's a pretty clear story right now does he have secured funding and if so, what's the source of that david faber was reporting yesterday and today and you know he's got extensive contacts on wall street, none of the names or the established sources that you would expect, none of the banks, none of the big players on wall street, none of them know anything about where the funding might be coming from it may be happening. it might be happening through some sovereign wealth fund which has not been contacted or come forward yet. you simply say to the company, where is the information where is the information and right now tesla is not saying a thing >> aside from the sec investigation. he has a duty to make an amendment and let's put that aside. if the board or he doesn't want to comment any further why would aren't they consider then just halting trading as they did briefly when he came out with
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the original treat instead of just having the market be guessing >> great point great point. >> believe me, that question has come up. we have tried to get clarification as to why they would not do this and none of this makes sense to people who are watching how this has been playing out. >> and that's why, karen, people are saying you probably shouldn't have done it this way when you tweeted this out the way you tweeted it out now that it's happened, why not come out and either halt trading before making a declarative statement. it's a very odd situation. >> thank you very much so guy adami >> yes, sir. >> what is the cost of borrowing on a tesla short right now >> it's about funding and tell the story and the market says there's no deal.
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i have to be consistent and say price is truth, but i also said on tuesday, i do think the stock is headed to 420 i said you know what technicians will be concerned and the same way we made oddly enough this year and failed. people will talk about that and technicians will love that >> i don't think it will hold up and i've been wrong and here we are at 352 the more important number is 3.59 and karen can opine on that, but i can't believe he would put out a tweet like that and the not have something in his back pocket which leads me to believe this stock is still headed higher. >> this isn't directed at phil he talked about -- watch out for social media this was delivered on social media. this is a ceo that's made declarative statements on social media and j.p. morgan did a great report when the ceo of a major public company made a declarative statement, we have to believe him and we have to assume that
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that's a fact so they changed their -- they rightfully changed their valuation of the company and went from 198 to 308 because he had a dcf and plus they looked at this thing on an earnings basis bottom line here, this guy made a declarative statement. if these are not true, this is insane other bottom line. this is the board that's so closely aligned with this company, you'd think this would be a chance for them to get out there. >> it is a board where members said if they would sign off and they had discussed it or musk had discussed, anyway, prior to his tweet. >> there was a prior number. >> even worse then for the board. >> they had some head's up if he was going to discuss it, that the board doesn't have any control. >> here's something that's easy for all of us to agree on. here's something that should be private when you think about it. >> in this day and age when a company like uber, the last
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valuation was between $60 and $70 and raised $15 billion in equity and debt. tesla, when you think of the cult and the founder out in silicon valley, tesla should be a private company and we should stop talking about it because we spend a lot of time talking about it i just want to make this one point. musk owns 22% and 20% and we're talking about a few dozen major shareholders here and not particularly interesting here. >> guy, we have breaking news to tesla. cnbc.com reporter alex sherman joining us on the phone. welcome to fast money. what have you got, buddy >> incremental. >> the board is set to meet with financial advisers and they are likely to say to elon musk that he should recuse himself from
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the board, as the board refused to take private. the board will set up an independent, special committee and there are board members to review a proposal. i don't have any particular detail about what this proposal may look like and the structure of it and whether or not they're committing financing and one of the people told me that there was at least a conversation between elon musk and the saudi sovereign wealth fund about being private and i have no information about whether or not that conversation, when and where or if there is saudi money or be private. at least we know that the board is taking them seriously, and what we couldn't expect is some sort of statement tomorrow from tesla saying this was a manic episode from elon musk, blah,
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blah, blah >> they are moving forward as if it was a very real private offer. >> alex, you're reporting, by the way, and thank you for breaking the story for us on cnbc and tesla is down, and it is i want to be clear on what you are saying are you asking elon musk to recuse himself from the board generally or recused himself from the board in the process of ostensibly exploring a take private situation. one is more permanent and one is temporary based on a situation >> the latter. the latter, i'm told >> you can go back to what happened with michael dell michael dell private a similar thing happened. >> none of this is for sure, but i'm told that that's likely to be recommended next week and another piece of information i can give you similar to when michael dell took dell private,
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i am told that what the board will recommend is for elon musk to get his own adviser so he sort of operates as a separate entity and this is what happened with michael dell when he took dell private so there are almost three entities here and there's the board in full and elon is the chairman of the board and then there would be elon as sort of a separate entity pursuing the management bioand then there would be this small, independent committee which would almost be a third entity year which would then review the transaction and the details and the structure of the deal. >> alex sherman, cnbc.com, thank you very much for bringing that to us, as well guy, you heard the news right there. according to the reporting, the board may be asking elon musk to recuse himself >> by the way, not surprising because the tax implications would be so great.
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you had talked about going private where our reporter ask asking him to step away from the process. what does that tell you about how the market feels it's what the shorts thing it's a difficult trade especially with a name like short. >> the board is just getting around to hiring an independent backer is recommending it. >> he must recuse hills and the proper thing -- recusing sxhims he believes like he's going down this path. we need more details than that it's astounding and this is a real huge company and that they're asking this way, it's
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ridiculous. >> he doesn't think it's preposterous that there's a private bid and despite the fact that they continue to burn cash and lose money the point is what is the protocol that this guy borrows and is this announcement by a board that now has to do something. that's not a reason to rally the stock 5% necessarily that's why this is dangerous if you bought stock at 385 on tuesday afternoon and you find yourself at 350 today and you panic because it could be at 310, you may have lost a lot of money here here's the point i don't know that these announcements have been done correctly. bottom line is dan talks about should this be a public company or not this is what you guys wanted all along. >> that's all they do. >> he basically took that company out because he could so maybe he should stay private, but he went to the public market there's rules. >> you clearly have a board that is back on its heels and likely caught off guard by the tweets and they have to react let's bring in larry mcdonald who has been listening at all of
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this stuff and put out a great note at looking at the tesla bonds and what they're telling us let's talk about the equity move because you have one of two things happening you have musk recusing himself or you have a market that may be happy that by this reporting by alex sherman it is more likely a deal where the take-out price is going to happen. i think karen nailed it. this is making it look like there's a deal it's a credibility cover up and they'll have to do this once that goes onboard. >> the bottom line as i'm listening to the table here. he's made a mockery of the sec and if you're worth $25, $26 million, right he's making a calculated bet that, okay, i might get a $5 million fee, and you're worth $25 million, you'll spend a
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million, 5 million bucks to burn the shorts and at the end of the day now the board has to put forth a happy face to make it look like they have real financing, but the whole capital structure all week bottom line from the solicit bonds to the high-yield bonds has really been telling you there's no financing there. >> bonds which are harder to feed for the average retail investor who will be watching "fast money. you look at those bonds and they're smarter than the equity markets. >> you know who says that? the credit markets to you, larry, are sending a signal. the market does not believe there is a deal forthcoming. >> at least not a leveraged deal and about the same level it was on monday. the credit to swap the 5.3% junk bonds are trading around the same area and they're trading at a big discount to where the equity was in march.
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so the capital structure is saying there's no deal right now. >> just human nature easier to ask for forgiveness than permission and that falls under the purview. my question is could he have the chinese in his back pocket and could he be building plants and there's a wink and a nod or the saudi investment fund, is that a put on tesla's stock not unlike what i said the other night, and the federal reserve is the s&p 500. >> the fascinating thing about that point and this tells us a lot about where we are in the market when i talk to the clients in the valley and i have a few clients out in the valley, they think he has the cash and they remind me as the point that dan made and musk and the top five holders control 30 billion of stock and then they don't need 80 billion >> right they need 50 billion, but they only have 11 billion of debt 50 billion of debt is an
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extraordinary amount of money. >> they're about to go borrow more cash. this is the whole issue here. >> any time when a deal like this isn't announced the cvs pulls out more because it's a more leveraged company. >> what about the fact that they just got listed. it looked like there are some people scrambling for it in front of the capital raise that would have been diluted? >> i'm shocked that it's taken so long and the high-yield market is starting to mature a little bit in terms of -- cvs is becoming more and more liquid and they should have the credit default swap credit. >> larry mcdonald, bear traps report and cnbc contributor. i appreciate you coming on, larry. thank you very much. let's go around the horn the story changed very quickly on the cnbc.com report we are glad that musk is being
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asked to recuse himself, as to your point, karen, they should >> absolutely. >> he has his own interest that may separate him from the shareholders >> aside from taxes. there are duties that the board needs to do. aside from that, and i don't know what the classification, maybe he can roll in, but aside that, he has to negotiate. >> larry said the "m" word he's making a mockery out of the sec. do you think he's making a mockery of the deal process here >> it seems to me he's made a mockery of disclosure practices and i would like to get back to the fundamentals in the stock because all we've been doing is talking capital markets and there's a reason why this capital market activity is happening. this is a stock that's not making money and this is the stock that some people think they're so far ahead of the competition that they can do whatever they want i see the german autos who have aspirations and execution that to me are not significantly farther behind and if you think tesla has a data pool that allows him to compete in this
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universe going forward, i think you're gone. >> is it the alleged property portfolio. >> it's sort of the great wild card, is it not? for the potential acquirer >> tim makes a good point. >> maub it's slightly higher and it's not like he's a full-fledged performer talks about bankers and it sort of makes sense and i do think the stock will be higher does it make sense as a basis and i can't believe he would put out that tweet without something in his back pocket. >> let's go back to uber again because it's probably the most disruptive company than tesla. their founder got run out by a board that were defensive of him
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and this guy has intantagonizedh short and if the sec was on his tail here and there was something that was going on, and now he's recused and one step removed from the whole process to me, you run the risk and if musk's gone from this company, that's the biggest pillars >> at this point, guys, let's ask the honest question. is elon musk a benefit to tesla? >> yes no doubt i think if he were out, the cold stock and the levitation that the stock has had on the visionary, you know status of elon musking deflate very quickly. >> he's launched the company and he's done the heavy lifting. >> he's an amazing businessman and he's done the hard work and now many would argue car companies are among the most difficult. >> and they need an operations
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person >> if the answer to that question is brian, if all of that is where all of the critical value is. i think you're right, karen. i'm not disagreeing with you and that would be a major concern to me. >> as a reminder, elon musk if you're watching cnbc we're not a call-in show, but we'll take your call. coming up, the sharing economy showdown we'll talk how the unicorn's like dan's uber are giving the publicly traded companies a run for their money plus jack playing defense. ahead of an apology good, but is he doing more harm than good uaimlways, live from tes sqre much more fast right after this.
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oh, wow! >> have you noticed we're switching gears and we'll get back to tough and don't worry. look at the music and the graphics the beautiful graphics did you like the bee gees growing up >> i like andy gibb's solo amazon, a lot of information amazon rallying more than 60%, but many other traditional retailers, the brick and mortars are also joining in. look at that, macy's up 60%. tjx, parent company t.j. maxx and homegoods, up. target up. it's what could push the market to new highs and beyond this year bob pisani who no doubt, went to a number of bee gees shows back in the day on roller skates joins us now from the nyse >> no, neil young and nuwave,
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blondie, talking heads and no, not the bee gees, sorry, brian >> they hit an all-time high and the xrt is up 13% and the last three months hit an all-time high today that's important because the xrt is equal weighted index of about 90 retailers you don't have one big name and you don't have a walmart and amazon pushing it around too much i like this action amazon is on fire this year, but the big retail names like kohl's and abercrombie and 5 below, they're all soaring 30% to 50% this year. what's going on? first, the second-quarter earnings and i don't mean in general. the 108 retailers that retail metrics track are seeing earnings gains of 18% and that's almost as good as the whole s&p 500 gain of 22% so the retailers are making money why is this happening? well, the big box retailers are finally starting to solidify
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positions and are grabbing some business that amazon isn't they're not going through amazon so the discounters like ross stores and tjx and the ross stores are doing better and most importantly the department stores and the macy's and nordstrom's, they're finally seeing revenue stability and even a little bit of improvement in some cases. second thing and this is important. some of this may reflect the fact that there are fewer and fewer stocks and we talked about this there were about 150 publicly-traded retail companies in the mid-2000. you know what we're down to now? 108. one-third less than there was two months ago just look at the macro backdrop. the retail name should be doing better for heaven's sakes in an environment where you have corporate tax cuts and lore unemployment and solid consumer confidence and solid spending, all signs of a healthy economy >> the bottom line here, brian this is the best retail's had in a long, long time. >> retail heaven you like blondie
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could you say it's a little bit of retail rapture, maybe >> you see what i just did there, bob pisani? >> very good >> oh, i like that i like that. >> high is high. karen and her heart of glass >> oh! that was good. >> nice! >> one of the smarter things i've heard in a long time. >> you're welcome. >> retail, karen finerman. retail's been great. here's the thing, what was in the past what have you done for us lately >> one i'm happy to own is coors. a lot of the reasons that bob cited are also happening at coors. getting their online business together and they're rationalizing the bricks and mortar and they're closing stores and that's helped them a lot and the jimmy choo acquisition is helping i like it. >> one way or another you'll make money >> nice! >> in the retail space last night we did something on the show called the power pitch and we pitched j.w. nordstrom,
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ahead of earnings. i do think nordstrom will surprise to the upside and i'll say this, let's not confuse the consumers want to spend with their ability to spend i think consumer sense of gdp is north of 50% you know the other side of the ledger that's equally strong i think we're making the same mistakes we've made a couple of decades ago. >> the investors are dreaming? >> you like that, guy adamy? >> let's move on >> new jersey's own. >> consumer diskregszary is want the only sector leading the market up over the past week you might have heard about the tech run giving it a run for its money that as the two sectors go head to head tech, versus the consumer. which one will come out on top let's bring in someone who knows about the consumer and the economy. rebecca paterson and chief investment officer at bez emer trust. smiling because we have a 4% economy and the consumer is
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flush with cash and is that all going to continue, though or are we at peak consumer and peak retail and peak earnings. >> in the next six months or so unless oil prices go up and stay up and weigh on gasoline hit the consumer, the consumer will stay strong at least until we get into early next year you made a great point, i think. i'm overweight consumer discretionary and tech >> yes, you made a great point the way you were talking about the canary in the coal mine which is the debt to gdp and right now it's not a huge headwind because interest rates are so low, but as the fed continues to slowly tighten that credit card debt gets bigger the debt to payment income low today, but it's going to change and there's an inflexion point that's also part of the economy so you don't feel it in the aggregate, but it's definitely there. >> it might be a credit in the kohl's mine. >> let's move on >> home prices at a seven-year
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high mortgage rate at a seven-year high and consumer more and more on disposable income on rent and housing. >> it's a late cycle, we're in the sweet spot for the consumer and thai feel more confident spending and i don't know when the door opens, maybe not middle of next year which leads me to choose, as great as bob pisani was with his pecks or text, i still prefer text because the companies have to have a multi-commerce, multi-platform structure that cost mono pep what are they spending on? tech >> karen just said you see the retailers rationalize brick and mortar and they're doing third-party deals from amazon. we know amazon has had a massive deflagszary force.
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it's good for consumers, but if it's putting out a retail job, is this a trend that we'll see in your opinion which is bad for the consumer >> i did a note on this last year because i was fascinated by the whole zombie mall thing and while retail jobs are being shed, a lot of those same people are getting other jobs in other sectors, whether it's online or elsewhere. so the actual amount of job losses in retail, while they're there, it's pretty small it's actually a lot smaller than you might have expected. people are finding other job elsewhere in the economy sometimes making more money. >> we talked about that monthly jobs number and someone wondered if they made a good point. maybe that was toys "r" us workers and it was a one-time blip, rebecca paterson, always a pleasure >> my pleasure. >> thank you around the horde, trade it the retail names aside from the jwn. >> mastercard and visa continue
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to grow in their valuation i still don't thinks hava -- >> that's one way to play this kind of emerging e-trend especially because you're seeing these devices, the payment processing devices just in a lot more places. >> you're not betting on the team, you're betting on the game it's processing, but a dint wffn way to do it >> back to school, we're partially for this report back to school, i think it will be strong and the valuation here is cheap. i want to stay long it >> bfl >> we have a big round in consumer discretionary, but tiffany and lvmh, and i think they're defensive on the trade front because face it, these are aspirational purchases and take a look at those. >> the visa, the squares and you have the fls and the tiffany's we know seymour was going high coming up, jack dors owe the defense feeling the heat about
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who should have a voice on social media platform, but is he putting investors in jeopardy. we'll have the story you ned to hear in the meantime, here's what else is coming up. >> plus, not well. you know the pricing and it could talk on earnings and it could signal it for stocks we'll tell you what that is when "fast money" returns this is a story about mail and packages.
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and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you welcome back to "fast money," everybody. thank you for joining us there's a lot of breaking news out there tonight including news on tesla we'll get more on tesla in the back half of the show because the stock went down after hours. let's talk about twitter because jack dorsey going on a somewhat of an apology tour, if you will, and maybe explaining his situation going on fox news's sean hannity show defending
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their decision to keep certain controversial figures like alex jones, info wars, on the platform listen to this >> we do not show a ban upon ideology or viewpoint or content period every model that we have on the network is really looking at the behaviors on the network we take those behaviors as signals and i do want to point out that these signals evolve minute by minute, hourly by hourly thee are not scarlet permanent letters that people then take on as a badge and they're not allowed to trend or ranked high in conversation. these are models that are looking at behaviors and behaviors of bad faith actors who intend to manipulate, distract and divide a conversation or to unfairly amplify their content which they didn't earn. >> now all of this comes, of course, after apple, facebook and even spotify, youtube and other tech companies have cracked down on the info wars
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host two questions here is dorsey making the right choices and is he playing politics maybe at the expense of the investors, guy adami >> the move low or twitter has been on the back of the quarter they reported on july 25th so now the question is from basically march to the all-time high is the stock value here? i happen to think it is. i don't think that last quarter was a disaster and i continue to think they used the wrong metrics and i don't think it's daily active users at all. they make that mistake and they should get away with it, and that's my opinion on the subject, but if you look at the quarter, i still think they're trending in the right direction and maybe the stock got ahead of itself and i think the fact that we round tripped the last three months maybes a compelling trip. >> you heard him mention the scarlet letter there are two things and one it's been highly correlated and let's want confuse politics with
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policies i think companies that have your data that have a right to if they need to protect your data, secure it in addition to collect it are trying to figure out what the guidelines are i think they're all struggling right now with this and i think that's an overhang for the sector, but remember, the move to me, twitter was not about to earn it. look at the cor lagrelation betn the two stocks >> is this a social media platform that it needs it more than any other -- >> is the social media for our industry >> i don't think twitter is a community of sharing as much as they think of it as news real time news and i don't go on twitter to show my dog i show a picture of guy's dog, and it's really about people and real time information and it's incredibly valuable and it's incredibly unique. >> you walk in the room. >> are you saying if he goes on fox is he being political? or nonpolitical? >> think he's being
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non-political. i like the move. >> i agree i think he's being non-political. >> that's their policy >> and he's trying to speak to the biggest audience out there and that's one of the biggest audiences. >> and he would be critical of the choice jack dorsey is the founder of this company and has presided over the resurgence of it since he came back to the company is the only person who would be able to do this as the ceo of twitter. right now given what's going on with all of their social peer, in my opinion. so it may be a hell that he ends up dying on. >> is he better than zuckerberg? >> much better than zuckerberg he stepped in a lot of land mines there and it didn't do a great job right before the earnings report and i will go back to one point. the stock's 20% decline on july 25th and it had nothing to do with this incident right here. >> come on i think twitter has been correlated with facebook and facebook was down big and look
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at twitter it was down 11% that night. >> we'll continue the debate and let's bring in another voice, a very smart voice, axios media reporter sarah fisher. you heard our commentary you put stuff out. i'm sure you're hearing from the populous, people in our industry and otherwise. what are they saying about jack dorsey's recent move >> the interview about alex jones with sean hannity was actually coincidental. i wouldn't give him so much credit for being so politically savvy. sources say they had the interview with nbc's lester holt with "nightly news" next wednesday and with brian stelter next sunday. it worked out that hannity's interview happened this week and it was the first one so it was good that he's appealing to conservatives and having that voice be heard on that outlet, but don't think that that's the only place he's going to go to explain it and the other thing, too is that jack dorsey just kind of wants to get out there and be the face of this company and better explain his policies
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he's not someone who is on tv a lot so it is important for him to get out there, to do a media tour and start to communicate to the american people as well as journalists and analysts like ourselves what this decision making really looks like. >> it is has the reaction been favorable or unfavorable, sarah? >> it's so far been a mixed bag. >> a lot of people can say how can they have a voice demand on your platform? >> in fact, cnn put out an article saying they're in the platform and i'm in this cap, myself twitter is sticking to these companies saying we don't ban anyone because of pr or pressure and rook, every tech company would lit him at the same time at least twitter is doing one thing right which is sticking to their policy and holding ground and hopefully it will help them
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increase in the future. >> karen finerman, isn't this just goodbusiness in a way half of the country is conservative and half is liberal, theoretically most twitter users self-identify as liberal jack dorsey realizes am i going to alienate 50% of my potential users in the united states. >> it's like michael jordan says, republicans buy sneakers, too. i think he's doingity right thing. >> sarah, thank you. we appreciate it. >> thank you if your just joining us, tesla's stock is on the move doing a u-turn from cnbc's alex sherman and tesla's board is planning to meet with advisers next week, but possible e possibly speed up plans to go private and maybe have musk recuse himself from the process. that stock up 3% right now much more on that story and much more on the marks d uretanyo more on the marks d uretanyo money right after the break.wfu. why are you so good at this? had a coach in high school. really helped me up my game.
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all right. if you are just joining us, the big story of the night will be tesla once again cnbc's alex sherman breaking it down, that tesla's board is planning to meet with advisers to speed up plans to go private. that's according to our reporting. the board is expecting to ask musk to recuse himself from any go private process that stock which was down after hours fairly considerably turned around immediately and look at that turn. it is now up more than 2%. for more on this let's bring in james stewart of "the new york times. he penned a critical editorial of musk asking did he violate securities laws about talking about tesla going private? james, welcome it's brian sullivan. good to chat with you again. i know you reported this morning that all of your wide sources on wall street have said that you
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haven't talked to anybody that has talked about financing is that still the case >> i think there have been maybe a few feelers put out, but it is still the case there is no indication that the quote, unquote, funding is secure as musk put out in his tweet and as i mentioned that is a material fact and it will move markets and that is not true, then there are going to be some serious legal implications there. by the way, this latest development which is also shocking on many levels, first of all, they're only now talking to some advisers they are only now forming a committee of the board they're only now asking musk to recuse himself after he put out a tweet announcing to the world that this buyout, he's going to post about it $420 that is crazy. all of this should have been done before he put out this tweet. if i was at the sec right now i
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would be beside myself. >> he threw a firecracker in the room and ran out and the board is left to clean up the mess when we talk about disclosure which was a big part of your editorial this morning, the 1934 law that focuses on insider trading has tried to have been adjusted in the social media era. there are still a lot of questions and it sounds like nobody is really sure if a twitter account from a private individual as elon musk is, this doesn't fall under the fair disclosure act >> that's correct. there's pressure on this, and nothing like what addressed a 70-plus $70 billion buyout or takeover like that and i cannot believe the sec is going to sanctions this and is going to say that okay, you can toss something off on twitter and that's the equivalent of an ak filing which goes out in a press
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release. i just can't believe they're going to do that it flies in the face of getting material information of as many people as possible at the same time that everybody has the same thing which by the way, that will be the problem with the latest news breaking the board is hiring advisers and the board will ask musk to recuse himself that should be in a disclosure to the general investing public and in my view, it should have been filed with the sec wednesday or this morning. they've already waited too long and they're getting themselves into more legal jeopardy. >> i can't believe there hasn't been an amendment filed. >> absolutely. >> it's ridiculous >> one thing in your piece today. you said maybe you can find some wiggle room in this phrase, financing secured. it seems like kind of a firm phrase how are you thinking, where is
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the legal room >> look, i'm trying to be fair to them here and thinking, maybe there's some sort of explanation here, which by the way, that's something they also ought to put in ak which is how did this happen and why did he tweet this when he did, but putting that aside, it will be like one of these, the same of what this is meaning or something like it to me fully secured means they got a financing deal, but secured doesn't mean, well, yes, saudi arabia told me they were gung ho to do it or something? something kind of loose like that, something short of a signed agreement i don't know i think it's a long shot i'm just saying i don't know all of the facts and until i do i'm not willing to say it doesn't look good. i wonder if the board knows all of the facts >> nobody knows the facts. >> except for elon musk right now. jim stewart, we appreciate your time thank you for joining us >> thank you. still ahead, let's get a
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check on our cramer cam as we go to break there's jim, he's talking about a handful of some left for dead stocks that are suddenly surging and he'll name the names and find out why they're suddenly seeing some light and that's at the top of the next hour on "mad money. more "fast money," stick around. for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.
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let's get a check on drop box because that stock is dropping >> there you go, drop box down
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9.5% dbx is the ticker. they had an earnings beat. the company announcing that its coo dennis woodside is stepping down it will be tough tomorrow. tim seymour? >> this is a top line issue and these guys are announcing better profitability and their trajectory is better than the entire peopremium product it's in a competitive state and it's been all over the map and i'm not worried about management here >> you worry that the commodity isn't the self-storage. >> there's a lot of competition. >> and commoditized and the margins will keep coming down in the space. >> the margins are going higher. >> dbx >> you have better profitability, but if you're not doing the top climb in the growth story you will get punished like this >> drop box down over 9% we'll have final trade everybody get ready. >> get ready. >> final trade right after this. [phone ringing]
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no, it's not wah-wah he's a stud. our final trade. come on. >> you're my favorite. guy adami, you're my favorite. gi rhtowey" with jim cramer bensig n >> see on tv in 30 minutes "mad money" with jim cramer begins right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money." welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer in bad markets, picking winners can be a real struggle in

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